Saudi Arabia and Singapore have announced plans to establish a crude oil storage arrangement at Jurong Island to strengthen energy security and supply-chain resilience in Southeast Asia.
The initiative was announced on October 26 during Singapore International Energy Week. Singapore’s Energy Market Authority and JTC Corporation exchanged a memorandum of understanding with Saudi Aramco as the first step towards implementing the arrangement. The countries’ respective energy ministries will coordinate the next stages.
Under the proposal, Saudi crude oil will be stored at the Jurong Rock Caverns, an underground facility designed to hold liquid hydrocarbons. Operations are expected to begin in the second half of 2027. The announcement did not specify how much crude oil the facility would hold under the arrangement.
The proposed storage is intended to help Singapore maintain access to crude supplies during disruptions to international shipments. It is also expected to strengthen the resilience of Saudi Arabia’s oil supply chain in Southeast Asia, a key market for the kingdom’s energy exports.
Singapore serves as a major regional trading and refining hub, making reliable crude oil supplies important to its energy sector. Storing Saudi crude locally could provide an additional buffer against interruptions to deliveries and help maintain supply continuity during periods of disruption.
The arrangement builds on energy cooperation between the two countries. It also reflects the importance of storage infrastructure in managing risks to international energy supply chains.
Implementation will require further coordination between the participating agencies and companies before operations begin. The proposed 2027 start date remains the next key milestone as Saudi Arabia and Singapore work to establish the storage arrangement.
